The Philippines: Government infrastructure spending slows down by 22%

• Government spending on infrastructure declined by 22% from Jan 20 to Nov 20 as mobility restrictions continued to delay construction activities, prompting agencies to discontinue some of their projects.
• According to the latest data from the Department of Budget and Management (DBM), infrastructure and other capital outlays amounted to PHP548.8 from Jan 20 to Nov 20, 22% lower than the Jan 19 to Nov 19 period’s PHP703.8bn.
• This happened as infrastructure spending declined for the fifth consecutive month in Nov 20, hitting only PHP40.3bn, which is about half of the PHP80.9bn reported in Nov 19.
• The DBM attributed the drop in infrastructure spending to the delays in construction activities brought about by the community quarantine measures.
• Some projects, the DBM said, were also discontinued as they could no longer be implemented or completed within 2020.
• Including equities and capital transfer to local government units, total capital outlays in the first 11 months of 2020 reached PHP727.9bn, 14% lower than PHP846bn in the same period in 2019.
• For Dec 20, alone, total capital outlays contracted by 31% to PHP64.6bn from PHP93.7bn in Dec 19.
• Despite the decline in infrastructure expenditures, the DBM said spending for COVID-19 response, as well as the release of the annual block grant to the Bangsamoro Autonomous Region in Muslim Mindanao, pushed up overall disbursements by 11.6% to PHP3.69tr in the first 11 months of 2020 from PHP3.3tr in 2019.
• The DBM said spending for Dec 20 was expected to quicken compared to earlier months as line agencies fast tracked the implementation of programs and projects and settled outstanding payables ahead of the closing of books by the year-end.

External Link : https://www.philstar.com/business/2021/01/20/2071594/government-infrastructure-spending-slows-down-22